Final answer:
It is true that the colonists objected to how tax money was applied rather than the principle of taxation, as they demanded representation in Parliament. It's false that Loyalists were protected and well-treated after the American Revolutionary War, despite provisions in the Treaty of Paris, they often suffered hostility and property loss.
Step-by-step explanation:
The statement that the colonists did not necessarily object to the principle of taxation, but rather to how the tax money would be applied, is true. The issue at hand was not taxation itself, as the colonists understood the need for taxes to support governmental functions. Instead, they were primarily concerned with the lack of representation in the British Parliament, which levied taxes on them without their input. This concern sparked the famous phrase "no taxation without representation," highlighting their demand for a say in how tax revenues were utilized.
In regards to the treatment of Loyalists following the American Revolutionary War, it is false to say that they were protected by the treaty and well treated after it was signed. While the Treaty of Paris, which ended the war in 1783, stipulated that there should be no further persecutions or property confiscations, in practice many Loyalists faced hostility, lost property, and were often compelled to flee to other parts of the British Empire, undermining the treaty's provisions.